You Expect to Have to Make a Capital Improvement Expenditure

Multiple Choice

You expect to have to make a capital improvement expenditure of $50,000 in a property in 5 years. If you can only set aside at most $800 at the end of each month in a sinking fund, and the annual interest in the sinking fund is 6%, then how many months in advance of the 5-year horizon must you begin saving the money?

A) 35 months.
B) 45 months.
C) 55 months.
D) Starting now 60 months in advance) is already too late.